Blackberry?
No. The other one.
Bail out?
Yes.
Blackberry, looks like, is not going to make it. From what I read and heard from users, it's simply inferior to Samsung and Apple.
In other words, left to the carnage of the free market and competition, Blackberry is getting eaten alive.
Circle of life in business.
But, predictably, the question has already been asked: Should Blackberry be bailed out.
Sure. Let's throw money at something that customers around the world have already determined it's not up to par. When it comes to bailing out losing companies, Canada is quite possibly the King of Stupid.
It's part of our neurosis to believe bailing out companies saves jobs and will magically heal itself.
It's part of our penchant for self-deception. We actually believe we're smarter than other nations in our alleged pragmatic and sensible approach to business. I think they call it balanced. Or something.
Never once acknowledging one crucial, indisputable truth: We survive off the back of American prosperity.
/Captain Canada faints.
To us, subsidizing companies is a way of staying competitive.
Don't be surprised the government considers this option with Blackberry under the guise of saving jobs. It's like feeding a dead plant and hoping it will revive itself. You can keep up the charade for only so long.
Then reality bites and when it does taxpayers will be on the hook. No problem. Bureaucrats with no feel for business who constantly take our money to invest in politically motivated companies with no real viability, will increase taxes to make up for the losses.
Bailing out losing companies is a misallocation of economic resources, and harms, not helps, the economy. It sends the wrong signals, and the market isn't allowed to correct things. Then, when the government intervention inevitably fails, what gets blamed? The free market!
ReplyDeleteCouldn't agree more.
ReplyDeleteThe stock market is flying at the moment in part because it's addicted to the notion of bail outs. It's as if it's saying "it's all good. Too big to fail, remember?"
How else to explain a stock market rise despite meek, if not horrendous economic data? Heard some guy explain another meltdown is coming worse than 2007.
At which point your leader will just blame Bush because he's incapable of taking responsibility for his own actions.
Oh, Obama worshipers still blame Bush. It's all Bush's fault, Obama just inherited a mess and is doing the best as can be expected.
DeleteThe stock market is being sustained by the Fed's QE policy. It's all fake and the economic numbers are fake. This weak economy cannot be propped up forever. It's going to coming crashing down. When is anyone's guess, it could take a number of years, but it wouldn't surprise me if it happens before the Great Leader's second term is over.
ReplyDelete